Groundbreaking second homes pilot helps local people become homeowners

A scheme to help people who could not otherwise afford to buy a property, using funds generated by second homes council tax premiums, has proven a success – helping more people to live and work locally in their own communities.

Before the Welsh Government introduced its groundbreaking second homes and affordability pilot in Dwyfor, only one Homebuy completion was approved in the area in five years.

Homebuy is particularly of benefit in more rural communities where there may be few opportunities to buy a home, and since the introduction of the pilot in 2022, 25 applications have already been approved.

The Welsh Government launched the Dwyfor pilot as part of a range of measures it introduced to tackle issues caused by second home ownership.

Cymraeg

The area in Gwynedd was selected as the pilot area based on its geographic size, the concentration of second homes in communities in the area and issues faced around the Welsh language.

Cabinet Secretary for Housing and Local Government, Jayne Bryant, said: “The Dwyfor second homes and affordability pilot continues to provide a real opportunity to assess a range of radical interventions designed to support thriving local communities in which people can afford to live and work.

“In such a small community and with Dwyfor’s particular needs, this is a real achievement, and I would like to thank Tai Teg, Cyngor Gwynedd and Welsh Government officials for their proactive approach.”

Cyngor Gwynedd, with support from the Welsh Government, was the first local planning authority in Wales, to implement an Article 4 planning direction from September 2024.

This means that planning permission may be required before changing the use of a primary residential property to a second home, short-term holiday accommodation or specific mixed- use property.

Premiums

More local authorities have also decided to use the powers available to them to apply council tax premiums on second homes and long-term empty properties.

From April 2025, 21 local authorities will charge a premium on either or both second homes and long-term empty properties.

The Welsh Government encourages local authorities to use the council tax premiums to help develop affordable housing solutions.

Interventions being tested in Dwyfor, such as the groundbreaking planning directions, are available to all local planning authorities in Wales. All local authorities can apply the council tax premiums.